This paper examines the current commercial real estate credit cycle across U.S. depository institutions by analyzing trends in noncurrent commercial real estate (CRE) loans. An analysis of peer-group data segmented by institution type — commercial banks versus savings institutions and federal versus state charters — reveals not only a broad-based deterioration in asset quality since late 2023, but also meaningful divergences in the severity and composition of credit stress.
We used data from the Federal Deposit Insurance Corp.’s BankFind Suite for the following institution types:
Commercial bank: A national- or state-chartered institution that accepts deposits and makes loans, as defined under the Federal Deposit Insurance Act.
Savings institution: A depository institution primarily focused on mortgage and consumer lending and treated separately by the FDIC.
Federal charter versus state charter:
